Correlation Between ScanSource and HomeTrust Bancshares,

Can any of the company-specific risk be diversified away by investing in both ScanSource and HomeTrust Bancshares, at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ScanSource and HomeTrust Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ScanSource and HomeTrust Bancshares,, you can compare the effects of market volatilities on ScanSource and HomeTrust Bancshares, and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ScanSource with a short position of HomeTrust Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and HomeTrust Bancshares,.

Diversification Opportunities for ScanSource and HomeTrust Bancshares,

0.04

Correlation Coefficient

ScanSource  HomeTrust Bancshares,

Significant diversification

The 3 months correlation between ScanSource and HomeTrust is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and ScanSource is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ScanSource are associated (or correlated) with HomeTrust Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeTrust Bancshares, has no effect on the direction of ScanSource i.e., ScanSource and HomeTrust Bancshares, go up and down completely randomly.

Pair Corralation between ScanSource and HomeTrust Bancshares,

Given the investment horizon of 90 days ScanSource is expected to under-perform the HomeTrust Bancshares,. In addition to that, ScanSource is 1.43 times more volatile than HomeTrust Bancshares,. It trades about -0.02 of its total potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.08 per unit of volatility. If you would invest  3,325  in HomeTrust Bancshares, on September 27, 2025 and sell it today you would earn a total of  1,029  from holding HomeTrust Bancshares, or generate 30.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

ScanSource  vs.  HomeTrust Bancshares,

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

HomeTrust Bancshares,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in HomeTrust Bancshares, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, HomeTrust Bancshares, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ScanSource and HomeTrust Bancshares,

The main advantage of trading using opposite ScanSource and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource position performs unexpectedly, HomeTrust Bancshares, can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HomeTrust Bancshares, will offset losses from the drop in HomeTrust Bancshares,'s long position.

The idea behind ScanSource and HomeTrust Bancshares, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.